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80% of Binance Tokens Fall in the Red Zone, What's Up?

Liputan6.com, Jakarta The majority of cryptocurrencies newly listed on Binance experienced corrections in terms of trading volume. Of the 31 tokens monitored, only five coins appreciated, including Memecoin (MEME), Ordi (ORDI), Solana-based Jupiter token (JUP), Jito (JTO) and Dogwifhat (WIF).

The fact that more than 80% of newly launched tokens are in the red indicates a challenging market environment. Blockchain expert Anndy Lian said that the current state of the cryptocurrency market is described as calm, with certain altcoins still trending despite a general lack of momentum.

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“Many projects listed on Binance may have a longer growth period, the growth may not be instantaneous like previous bull markets,” he said, quoted by Cointelegraph.

However, new tokens on Binance are listed at an average fully diluted valuation of over USD 4.2 billion despite having no real user base. This could significantly limit its upside potential.

“Often, tokens launched on Binance are no longer investment vehicles. All potential profits were lost. “Instead, they represent exit liquidity for insiders taking advantage of retail's lack of access to quality early investment opportunities,” said the researcher under the pseudonym Flow.

Despite having no venture capital backing, the Ordi token is the most profitable, rising more than 261% since launch. Meanwhile the controversial Dogwifhat memecoin took second place, with a price increase of more than 117%. Retail interest is a major factor driving the growth of memecoins, which can operate independently of the altcoin market segment.

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“Because some of them are long-term, many retail investors are flocking to memecoins. This can be seen from the performance of MEME and WIF. In fact, if you look at the trading volume. “Six of the top traded coins are memes,” Lian said.

Amidst the hype surrounding the memecoin, Pepe (PEPE) hit a new all-time high above USD 0.000010 on May 13, a day after Keith Gill, the man widely credited with starting the 2021 GameStop event returned to social media. Capitalizing on the retail hype, a savvy Pepe trader turned USD 3,000 into USD 46 million within a month during Pepe's recent rise to an all-time high.

80% of Binance Tokens Fall in the Red Zone, What's Up?

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